Siddharth Rajeev, B.

Tech, MBA
Analyst

Vincent Weber, BSc

Research Associate—Mining

Kevin Liu, BBA, BSc

Investment Analysis for Intelligent Investors Research Associate

September 15, 2008

Monument Mining Ltd. (TSX-V: MMY; FSE: D7Q1) –Initiating Coverage; Fast Tracking Gold
Production in Malaysia

Sector/Industry: Junior Mining/Gold www.monumentmining.com

Market Data (as of September 12, 2008) Investment Highlights
Current Price C$0.22
Fair Value C$0.50 
 Monument is focused on the exploration and development of two gold
Rating* BUY properties along the Central Gold Belt in Pahang State, Malaysia.
Risk* 5 (Highly Spec) 
 They finalized the 100% acquisition of the Selinsing gold project in
52 Week Range C$0.20 –C$0.90 June 2007. This project has a NI 43-101 compliant resource estimate
Shares O/S 155.64 mm of 231,000 ounces indicated and 388,000 ounces inferred.
Market Cap C$34.24 mm 
 The property has a long mining history and significant mining
Current Yield N/A infrastructure in place. The company expects to put this project into
P/E N/A full production in Q2-2009.
P/B 0.99 
 The adjacent 100% owned Buffalo Reef project, which was acquired
YoY Return -74.1% by Monument at the same time, has a historic resource estimate of
YoY TSX V -41.7% 155,800 ounces historic indicated and 29,600 ounces historic inferred
*see back of report for rating and risk definitions along the same epithermal trend.
3000000 $0.90

 We believe the company has significant exploration upside along the
continuous epithermal trend that encompasses Selinsing and Buffalo
2500000
$0.80
Reef.
$0.70 
 In July 2008, the company completed a private placement and a credit
2000000 $0.60
facility agreement to raise $38.1 million. Monument is now fully
funded to move the Selinsing Gold Mine Project forward to the
$0.50
1500000 construction stage, and into production.
$0.40

1000000 $0.30 Risks

$0.20
 The success of drilling, resource expansion and development are very
500000 important for the compan y’sfutureprospects.
 The value of the company depends heavily on gold prices.
$0.10

0 $0.00
11-Oct-07 02-Jan-08 25-Mar-08 16-Jun-08 07-Sep-08

K ey F in a n cia l D a ta (F Y E - J u n e 3 0 )
(C $ ) Q 3 -2 0 0 8
9 mo
C ash & C ash E q u iv alen ts 1 ,1 0 7 ,8 4 2
W o rk in g C ap ital (8 ,2 3 5 ,8 0 2 )
M in eral A ssets 4 2 ,1 4 5 ,0 4 6
T o tal A ssets 4 2 ,9 0 6 ,4 8 6
N et In co m e (L o ss) (2 ,5 8 5 ,7 0 9 )
EPS (0 .0 3 )
Monument Mining is focused on epithermal gold deposits in Malaysia. The company is planning to put the Selinsing property into
full production by Q2-2009, while continuing exploration at Selinsing and Buffalo Reef. Selinsing has a NI 43-101 compliant
resource estimate of 231,000 ounces indicated and 388,000 ounces inferred. Buffalo Reef has a historic resource estimate of 155,800
ounces historic indicated and 29,600 ounces historic inferred.


 2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 2

Company Monument is focused on the exploration and development of two gold properties along the
Overview Central Gold Belt in Pahang State, Malaysia. The company is advancing the Selinsing gold
project in Malaysia towards full production in Q2-2009, while continuing exploration on
their landholdings along the Central Gold Belt.

Gold operations in Malaysia

Damar Buffalo Reef Selinsing Gold Deposit

Exploration Monument Mining (TSX-V: MMY)
Historical Resources: Production Start: Q2/2009
Resources:
• Indicated
155,800 oz gold • Indicated
231,000 oz gold
• Inferred
29,600 oz gold • Inferred
388,000 oz gold

Avocet Mining
Raub Australia owns 14.9% of
Gold Mine Monument
Peninsular Gold Limited
(AIM: PGL) Penjom Gold Mines
• Produced
Avocet Mining PLC , (AIM: AVM)
1 million oz gold
• Produced 1 million oz gold to
• Resources
April 2007
921,000 oz gold
• Resources at January 2008
Indonesia
954,900 oz gold

Source: Monument Mining Ltd.

Corporate The company changed its name from Moncoa Corporation to Monument Mining Limited in
History April 2007, and completed a 2:1 rollback in June 2007. The change was completed in
conjunction with the 100% acquisition of the Selinsing, and Damar Buffalo Reef gold
projects in Malaysia, through reverse takeovers of Able Return Sdn Bhd and Damar
Consolidated Exploration Sdn Bhd (a subsidiary of Avocet Mining), respectively. Avocet
Mining (LSE: AVM), a gold producer based in London, UK, remains the largest shareholder
of the company, holding 15% of the company (undiluted). Avoce t’ss haresa rehe ldi n
escrow until June 2009. The company announced their intention to acquire these projects in
March 2005, but due to regulatory obligations, the transaction took two years. Robert
Baldock joined the company as president and CEO in July 2005. The company has one
wholly owned subsidiary in Malaysia, Polar Potential Sdn. Bhd., which in turn controls three
additional Malaysian subsidiaries.

Mining Ma laysia’spr
ima ryna tur
alr esourcea tthistimei spe tr
oleum. Hi s t
orically,t hec ount ry’s
Outlook- economy was dominated by tin mining and smelting until 1983, when the tin market
Malaysia collapsed. Currently, Malaysia produces small quantities of copper, bauxite, iron ore, coal,
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 3

andg old.Thec ompa ny ’sprojectsarel ocatedintheCe nt

ralGol dBe lt,whi chis bounded on
the east and west by the Eastern Tin Belt and Western Tin Belt. Other producing mines in
the Central Gold Belt include Raub and Penjom (largest gold producer in Malaysia
producing over 100,000 oz of gold per year; Resource estimate –611,300 oz of measured
and indicated, and 384,400 oz of inferred), owned by Peninsular Gold Ltd (AIM: PGL) and
Avocet Mining PLC (AIM: AVM), respectively.

The company finds Malaysia to be an excellent jurisdiction for mineral exploration and
mining, even thoughi tisnotapr oli
ficmi ni
ngdi stri
cta tt hist i
me .Ma laysia’sa dva nta
g es
include good infrastructure, low operating and labor costs, and a 5 year corporate tax break.

Source: Monument Mining Ltd.

Selinsing Gold Property Overview: The 170 acre Selinsing gold project has a NI 43-101 compliant
Project resource estimate of 231,000 ounces indicated and 388,000 ounces inferred, and has
significant mining infrastructure and a positive historic pre-feasibility study recommending
development at a gold price of US$280/oz. The company expects to be in production in Q2-
2009.

Ownership: Monument completed the 100% acquisition of the property in June 2007. They
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 4

acquired the project by paying the vendor, Wira Mas Trust of Malaysia, $3.5 million cash,
and issuing 31.40 million shares, and 5 million share warrants, at $0.65 with a two year
period. The company also took over a residual debt of $9 million payable in one year. (with
no interest or penalty if paid in one year). Monument repaid the debt by the due date prior to
June 30, 2008. Able Return Sdn Bhd, the trustee of a Unit Trust for Wira Mas Unit Trust,
became a wholly controlled subsidiary of Monument through Polar Potential Sdn. Bhd.

The Malaysian government maintains a 5% net smelter return (NSR) on all producing
projects in the country.

Historic Exploration/Production: Selinsing has a long and productive mining history.

Small scale artisinal mining has been ongoing for at least 200 years, as evidenced by small
shafts and open pits. The British government established an underground gold mine in 1888.
The mine was transferred to the Malayan Pahang Exploration Company Ltd. 1897. Over the
next four years, this group mined approximately 31,000 ounces of gold. When production
ceased in 1901, production continued using the heap leaching of tailings. Mining has been
intermittent since that time, as the property was transferred from owner to owner.

Tshu Lian Shen Mining Sdn. Bhd. (TLSM) produced about 50,000 oz of gold in 1987 up to
mid 1996, concentrating mainly on high grade quartz veins with visible gold and higher
grade halo ore. Subsequently, the Selinsing Mining Joint Venture, consisting of TRA Mining
(Malaysia) Sdn. Bhd. (TRA) and Trident (formerly Tshu Lian Shen Mining Company) was
abandoned due to dispute. This caused Selinsing Mining Sdn Bhd to commence treatment of
tailings alone in 2003. Production during 2003–05 from tailings was about 6,624 oz.

Accessibility and Infrastructure: The project is well sited for accessibility and
infrastructure. It is located close to a paved road and is approximately 2 hours driving
distanc ef rom Ma laysia’sc apital
,Kua laLumpur . Duet oitspr oduc t
ionh is
tory,i thas
communications, power, water, internal roads, and service buildings including a plant
workshop, store, drill shack, prep lab, assay lab, and accommodations. The advantage of
the existing infrastructure is that the company does not have to build it, which reduces
the capital cost and the timeline towards production.

Geology and Mineralization: Selinsing is a classic epithermal gold deposit, where gold is
hosted in quartz veins within a shear zone. Lower grade gold mineralization is found in the
halos surrounding the quartz veins.

As with most open pitable low-grade gold epithermal deposits, there is potential for selective
underground mining of high grade feeder zones after the pit is exhausted. The company has
identified bonanza feeder zones at depth, but they have not been fully delineated.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 5

Source: Monument Mining Limited

Metallurgy: The company is planning to use carbon in leach (CIL) cyanidation to recover
gold from the oxide and sulfide resource. Based on test work completed to date, the
company anticipates recovery rates of 87% gold for both materials. Unlike ore at Buffalo
Reef, Selinsing ore is not refractory and does not require any special metallurgical
considerations. For heap leach material (for the lower grade material) at a 0.59 g/t gold cut-
off, the expected gold recovery is 50%.

Economic Studies: A positive historic pre-feasibility study was completed in 1997. The
company completed a preliminary 43-101 economic assessment/scoping study in late 2007.
The details from this study are outlined in the table below.

Resource Indicated: 3.63 million tonnes grading 1.76 g/t gold

(cut-off –0.75 g/t)
Processing Rate 400,000 tonnes/year
Mine Life 4.5 years
Recovery 87% gold for oxide/sulphide, 50% for heap leach material
Capital Cost $8.1 million (for the construction of a process plant) + US$0.12
million (for the setup of a leach pad); revised to $13.0 million by
management
Operating Cost $13.8/tonne mining and processing

The study gave a base-case NPV of US$15.1 million.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 6

Existing topography of the Selinsing pit

Source: Snowden Mining Consultants

Current Status: Project development, including engineering, pit design, procurement, and
design are ongoing. In Q3, the company completed the construction of a 4,000 sq. feet
administrative office building and supporting infrastructure (power supply, water supply and
hardwired local area network), and initiated a final review and upgrade program for the
environmental study for the project, which will include the upgraded tailings storage facility
and the relocation and upgrade of the treatment plant. The company also continues to
participate in various community services such as support for the various education and
awareness campaigns for school children.

With the completion of a $38.1 million financing, Monument is now engineering Stage I of
the Selinsing gold open pit project treatment plant with an upgraded crushing circuit for a
future extension of the leach tank farm.

In July 2008, Monument completed a transaction with Avocet to acquire a 1 million tpy
ball mill for the planned Stage II gold treatment plant extension at the Selinsing
Project. Monument paid $3.25 million to Avocet by issuing 8.125 million units at a unit
price of $0.40 (each units consists of one common share and one share purchase warrant
exercisable at $0.50 per share maturing in 3 years). The twin of this mill was recently
instal
leda tAvoc et’sPe njom Gol dMi ne,whi chma ke st her el
ocat
ionoft hemi l
lt ot he
Selinsing site readily and economically possible. According to the company, the Stage II
gold treatment plant upgrade is not expected to happen for approximately 6-12 months after
the commissioning of Stage I, and will be dependent on the future exploration success of
Buffalo Reef.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 7

Resource Estimates: The following resource is presented at a 0.59 g/t gold cut-off, which
was determined by the preliminary economic assessment to be economic based on operating
costs.

Resource Category Tonnes Grade (g/t gold) Contained Ounces

Indicated Total 4,820,000 tonnes 1.49 g/t 231,000

Oxide 2,749,000 tonnes 1.52 g/t 134,000
Sulfide 2,071,000 tonnes 1.45 g/t 96,000

Inferred Total 10,320,000 tonnes 1.17 g/t 388,000

Oxide 596,000 tonnes 1.04 g/t 20,000
Sulfide 9,719,000 tonnes 1.18 g/t 368,000

Development Timeline: The company expects to begin construction in Q3-2008. Under

this timeline, commissioning and production at a rate of 400,000 tpy using a CIL circuit is
expected to commence in Q2-2009. Cash flows from initial production are planned to be
used to ramp up annual production from 40,000 ounces per year by twinning the mill to
produce between 75,000 and 100,000 ounces per year. The company is evaluating an
increase in the production rate to 800,000 tonnes/year+ in year 3.
Damar Buffalo Property Overview: The 2,050 acre Damar Buffalo Reef property is adjacent to Selinsing
Reef and covers an additional 3.2 kilometers of the Central Gold Belt Trend. This property has a
historic indicated resource of 155,800 ounces and a historic inferred resource of 29,600
ounces. Through exploration, the company intends to bring this resource to NI 43-101
compliance. Material from Buffalo Reef could be trucked to the processing plant at
Selinsing and extend the mine life.

Ownership: In June 2007, the company paid Avocet $1.75 million in cash, issued 15 million
treasury shares and 7.5 million share purchase warrants (exercise price - $0.65 per share,
maturity period –2 years) to acquire this property. Monument has a commitment to spend
$0.40 million on exploration (already spent) over the first two years. Also, Monument has to
pay Avocet an additional US$5.88/oz for any increase in the calculated historic resource
over the two year period. This obligation has since been satisfied in full.

The Malaysian government maintains a 5% net smelter return (NSR) on all producing
projects in the country.

Historic Exploration/Production: Gold panning has been reported on the property since
the early 1900s and a British mining company completed 1,000 meters of underground
development in the 1930s. There are no production records or indication of what processing
methods were used to deal with the refractory nature of the ore. Modern exploration
commenced in early 1993 by Damar Consolidated who worked the property until 1996. In
1997, Avocet began exploration in the area and continued until 2006. They spent
approximately $0.9 million on exploration over that time period. No work has been done on
the property since that time.
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 8

When the company acquired the property, approximately 7,000 meters of RC, and 2,000
meters of diamond drilling had been completed. Notably, little was known about the
str
uctureoft heg e ol
og y,a sAvoc et’sdrillingwa spr i
ma rilyr eversecirc ul
ati
onr
ockc
hip
sampling. Historic drilling had focused on the top 80 meters of the deposit.

The company commenced a drilling program in September 2007, to expand and delineate the
Buffalo Reef deposit. This drilling program was based on the recommendations outlined in
the NI 43-101 technical report completed in June 2007. The Phase I program consisted of
1,000 meters of RC drilling and 1,400 meters of diamond drilling. The purpose of this
program was to confirm previous results.

Accessibility and Infrastructure: Access to the property is good on paved roads. Once on
the property, undeveloped, and sometimes rough roads, are used to traverse the property.
Some of these roads in the southern portion of the property are utilized by the Felda palm oil
farming cooperative. The company is negotiating an agreement to explore on the property,
and a formal option agreement to allow for production is underway. In addition, two of the
Buffalo Reef claims will be used as the site for tailings disposal from the Selinsing Mine.

Geology and Mineralization: The Buffalo Reef deposit consists of high grade gold quartz
veins hosted by a sedimentary north-south trending shear zone that is approximately 200
meters wide. The deposit has been dived into three zones: North Zone, Central Zone, and
South Zone. Exploration and mapping to date suggests that this system is contiguous with
the Selinsing deposit and remains open in both directions and at depth.

Metallurgy: Monument has not conducted any metallurgical testing at this property.
Avocet, who operates the Penjom mine approximately 40 kilometers away, and explored the
Buffalo Reef project, completed preliminary metallurgical testing that indicates further
testing is required to achieve economic gold recoveries from unoxidized ore. It also
indicates the unoxidized ore is refractory and not amenable to conventional gravity, flotation,
or cyanidation. Resin in leach and heap leaching were effective on oxide material with
recoveries ranging from 80-86%. Resin in leach is being used at the Penjom mine.

Further test work is required to identify a metallurgical technique that can recover gold from
the unoxidized material. The technical report suggests that the company look into alternative
metallurgical processes, such as biooxidation, to treat the arsenopyrite hosted gold. This
technique has been successfully used for refractory ore.

Current Status: The Phase II program commenced in January 2008, and will consist of
10,000 meters of infill RC drilling (6,659 meters was completed as at March 31, 2008) for
the generation of a NI 43-101 compliant resource estimate. It will also include some step-
out drilling to test possible extensions of the mineralized zones. Results released to date
have been very positive, confirming and expanding the mineralized zone. The continuity of
grade and mineralization is apparent in these drilling results. The company will complete
their drilling program in September 2008, and an updated NI 43-01 compliant resource
estimate is scheduled to be finalized by the end of 2008.
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 9

Resource Estimates: Avocet completed a JORC (Australian Mining Code) compliant

resource estimate in 2006. OreQuest, who completed the Buffalo Reef NI 43-101 technical
report in 2007, were unable to convert the JORC compliant resource to a NI 43-101
compliant resource because the original assay certificates from historic drilling were not
available, past analytical results could not be confirmed through re-testing, and a QA/QC
program was not in place.

Approximately 17%, or 31,500 ounces, of the resource outlined below is contained on the
Felda Lands. Option negotiations are underway, and we believe that the company will be
able to negotiate a formal agreement.

Category Tonnes Grade (g/t gold) Contained Gold (oz)

Historic Indicated 1,944,000 2.49 155,800

Oxide & Transition 572,000 2.31 42,500
Sulfide/Unoxidized 1,372,000 2.57 113,300

Historic Inferred 568,000 1.62 29,600

Oxide & Transition 275,000 2.57 14,200
Sulfide/Unoxidized 293,000 1.63 15,400

Development Timeline: The company intends to continue exploration and resource

delineation drilling at Buffalo Reef over the next two or three years. A development
timeline is subject to project assessment following the completion of a NI 43-101 compliant
resource estimate. A suitable metallurgical process will have to be identified before the
company begins formal economic studies.
Property In January 2008, the company entered into a letter of intent to acquire 32,000 acres of land
Expansion adjacent to the Selinsing and Buffalo Reef projects, as well as the exploration database
created by previous operators on the property. The total value of the deal is expected to be $5
million ($1.5 million in cash, 7 million in shares, and 3.5 million share purchase warrants at
an exercise price of $1 per share for 2 years) The company believes it is important to secure
the land package in the area before going into production. This acquisition has not been
finalized.
Appointed Monument Mining Ltd. recently announced the appointment of a new Mine Manager, Kevin
Experienced Wright. Mr. Wright as been working as a mining engineer for 33 years, with extensive
Mine Manager experience building gold treatment plants as well as developing and operating gold mines.
He has worked on small and large scale mine operations, including both open pit and
underground developments. His technical expertise will be an asset to the Monument Mining
team.
Management & Robert F. Baldock, CA(M), FCPA, FCMC - Chairman, President & CEO
Board of Mr. Baldock is an experienced mining executive as well as being a qualified and experienced
Directors accountant with over 30 years of hands on management of public and private corporations
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 10

across a wide range of industries.

Mr. Baldock is the former co-founder and Managing Director and subsequently Executive
Chairman of Golconda Minerals N.L.Group of Mining Companies listed on the ASX,
NASDAQ and Stuttgart Stock Exchanges. He was as well President of a controlled
subsidiary, Nevada Goldfields Corporation, which was listed on the TSX, Toronto,
NASDAQ,USA a ndSt uttgartSt ockExc hang es.Mr .Ba l
doc k’sr olewi tht heGol conda
Group also included the role of Managing Director of Duketon Exploration Limited, listed
on the ASX. The Market Capitalization of the Golconda Group and its subsidiaries was over
$200 million at the peak of operations. Dur i
ngMr .Ba ldock’spe riodoft enureheha dt he
overall responsibility for raising $30 million of capital and using the raised capital and cash
flow from operations to oversee the design, construction, commissioning and operation of
six mineral processing plants.

Cathy Zhai, B.Sc. CGA - Chief Financial Officer, VP Finance & Corporate Secretary
Ms. Zhai has been the Chief Financial Officer at Monument Mining Limited (Formerly
“Monc oaCor porat
ion” )s i
nce2001.Ms .Zha iha sove rt hirt
e en(13)y ear
sofe xt
ensive
experience at senior positions in corporate finance, financial reporting, overseas capital
registration and cash management, and business strategic planning. In her career, she has
worked as CFO, Director of Finance and other senior rolls with several public and private
companies across the mining, high tech and biotech industries. Ms. Zhai is a designated
Certified General Accountant and holds a Bachelor of Science degree in Mathematics and
Diploma in Financial Management Accounting and Multicultural Comparison. Ms. Zhai
reports to Chief Executive Officer.

Zaidi Harun, B.Sc. - Vice President Exploration, Director

Mr. Harun is an experienced Exploration Geologist with 15 years experience in international
mining industry field work as well as extensive mine geological exploration experience. Mr.
Harun has spent the last 8 years working on the Selinsing Project site for Selinsing Mining
Sdn Bhd. developing the present reserves and resource. He has been involved from the onset
inMonume nt ’
spr el
imina r
ymi nepl a nninga ndi nit
ialde velopme ntf ort heSe l
insingGol d
Mine project.

Kevin J. Wright, ACSM - General Manager, Mine Manager

Mr. Wright is a mining and Mineral Processing Engineer and has over 33 years of
international experience building mineral treatment facilities, developing both underground
and open caste mines and operating such projects. His international experience has included
management of mines and plant design engineering, reliability maintenance planning,
permitting, quality control and the business of running safe profitable mines and mineral
processing plants in Central and South America, the Caribbean, Asia, Russia and the former
Soviet Union as well as Scandinavia, Eastern Europe and North America.

Mike Kitney, M.Sc., (Met.) AusIMM - Project Design Manager

Mr. Kitney has over 25 years of industry experience with the last 10 years in project design,
project construction management and operations management with Minproc Engineering,
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 11

Western Mining, Avocet and others.

John Barton, B.Sc., (Eng.) ARSM, MAusIMM - Project Metallurgical Engineer

Mr. Barton has over 30 years experience in team and project management in international
mining projects for mining groups including Minproc Engineering, Edward Bateman, BHP-
Billiton, Shell Metals, Gencor Group and Snowden Mining Consultants.

Carl Nissen –Director

Mr. Nissen spent over 20 years with Commonwealth Construction Company in EPC design,
estimate and mine project construction management. He has extensive experience with major
companies in large-scale mine plant operation and maintenance as well as an excellent
background in mine design, planning, estimating, construction and maintenance including
over 10 years as Mine, Mill and Smelter Maintenance Manager with Teck Corporation.

Patrick Soares, B.Sc. Geology (Honours) –Director

Mr. Soares is a Geologist with 22 years experience in the gold mining industry including 13
years as Surface and Underground Exploration Geologist with Echo Bay Mines at Lupin
Mine, Ulu Mine, Pine Point Mine and others. In addition Mr. Soares has 10 years
experience as Manager of Investor Relations for a number of listed Canadian based mining
companies.

Adam Bradley –Director

Mr. Bradley is a Senior Metallurgist with 12 years experience in mineral processing
supervision with Alcoa at the Pinjarra, Wagerup and Waroona refineries and as well spent
two years with the Normandy Gold Group in, Kalgoorlie. Mr. Bradley is presently the
Senior Process Consultant and Manager of Capital Projects at the Alcoa Wagerup Alumina
Refinery at Waroona, Western Australia.

Management We believe that the most important aspect of a junior mining company is its management.
Rating Our management rating system is a quantitative way to rate management based on a number
of factors, including technical e
xpe
rie
nce ,thea bil
it
yt or ai
sefinanci
ng ,andma na geme nt
’s
time commitment to the company. We also analyzed trading records to identify for evidence
of unusual trading by management. Our net rating for MMY is 3.75 out of 5.0, which we
have rated above average.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 12

Management Rating

Technical Experience

Experience in putting mines to production or

generateing pros pects
Track rec ord in raising capital and working for public
companies

Experienc e in projects similar to current projects

Team`s focus on the company

Any unusual trading in the pas t 12 mo NO

Net Rating

0.00 1.00 2.00 3.00 4.00 5.00

Strength of
Board The Toronto Stock Exchange recommends that the Board of Directors of every company
include independent or unrelated directors who are free of any relationship or business that
couldma t
eriall
yinter
ferewi tht hedi rect
or ’sabili
tyt oac tinthebe sti nter
estoft hec ompa ny.
An unrelated/independent director can be a shareholder. We have rated the strength of board
based on informat i
on a vailablef r
om t hec ompa ny’sa nnual“ Ma nage me ntI nforma ti
on
Ci r
cular ”t oe nsuret hatt he c ompa ny ha sa ni ndepe ndentBoa rd ofDi r
ectors,Audi t
Committee, and Compensation Committee. This report also identifies any non-arms length
transactions and manageme nt’sc ompe ns ati
on.

Monume nt
’sBoa rdofDi r
ectorsi sma deupoff iveindi vidua l
s:Robe rtBa l
doc k,Za idi
Harun, Carl Nissen, Patrick Soares and Adam Bradley. None of the directors have filed for
personal bankruptcy. Adam Bradley does not hold shares in the company. The related/non-
independent directors are Robert Baldock and Zaidi Harun, as they are executive officers of
the company and receive compensation. The Audit Committee is made up of Robert
Baldock, Patrick Soares, and Carl Nissen. The Compensation Committee is made up of
Robert Baldock, Carl Nissen, and Adam Bradley.
Outlook for
Gold Supply and Demand: The chart on the next page shows the supply and demand figures
from the World Gold Council and GFMS Ltd. Global demand for gold increased by 4%
YOY in 2007 (3.40 million tonnes to 3.55 million tonnes), as supply dropped by 3% YOY
(3.58 million tonnes to 3.47 million tonnes). The increase in demand and drop in supply led
the gold market to move from a supply surplus of 182 tonnes in 2006, to a supply deficit of
79 tonnes in 2007.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 13

Source: World Gold Council and GFMS Ltd.

The chart below shows gold prices since January 2006. Gold is currently trading at about
US$776/oz.
0.027869 Gold Price
0.008421 (Jan 3, 2006 - Sept 10, 2008)
1,200
-0.005255
0.004206
0.00445
1,000
-0.003401 2007 Avg - $695/ oz
0.013018
800
US$ / o z

0.003099
0.010772
600
-0.001276 Avg (Jan 73 - Jun 08) - $361/ oz
0.047147
400
-0.003906
-0.022262
200
-0.004512
03-Jan-06 04-Sep-06 06-May-07 05-Jan-08 05-Sep-08
-0.007566
Source: KITCO
-0.002027
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 14

Although gold prices have dropped considerably after achieving record highs
(US$1,000/oz+) in early 2008, we have maintained our positive outlook on gold due to the
following macro economic conditions.

a) The slow down in the U.S. economy, relatively lower real interest rates and persisting
inflationary expectations, we believe, will continue to put downward pressure on the US$
with respect to other global currencies.

The International Monetary Fund (IMF) has lowered their U.S. GDP growth rate estimate
from 1.5% to 1.3% in 2008 (versus 2.2% in 2007), and from 0.8% to 0.7% in 2009. The
unemployment rate in the U.S. is expected to be between 5.5% and 5.7% this year, up from
4.6% in 2007. In addition, real interest rates in the U.S., as we had predicted, have now
turned negative as the Fed cut interest rates from 5.25% to 2.00%. Negative real interest
rates are very unfavorable for the US$. The rate cuts also add to inflationary pressures and
simultaneously depreciate the value of the US$. The Fed has raised their forecasts for
inflation in 2008 up from 2.1 –2.4% to 3.1 –3.4%. Although we do not expect the Fed to
slash rates further for the rest of the year, we believe that real interest rates will continue to
be negative (at least for the next 6 months) because of high inflation.

b) We have noticed a positive correlation between gold and oil prices in times of high oil
prices. High oil prices create inflationary expectations among investors and lead them to drift
towards gold. The following chart shows oil and gold prices since 1986. We noticed that the
positive correlation between monthly log changes in oil and gold prices increased during
January 2006 –January 2008, when oil prices were high, from the historic correlation (1986
–2006) of 0.18 to 0.49; a significant jump.
Oil Vs Gold Prices
160 1200.00

140
1000.00
120
800.00
100
US$/bbl

US$/oz

80 600.00

60
400.00
40
200.00
20

0 0.00
Jan-1986 Sep-1991 May-1997 Jan-2003 Sep-2008

Source: EIA and Kitco WTI Spot Price Gold

Although oil prices have dropped to US$103/bbl, prices are expected to stay above $80/bbl
through at least 2010, which we believe will also have a positive effect on the demand for
gold.
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 15

c) Investment demand has dropped recently (as shown in the chart below); which we believe
partially explains the recent drop in gold prices. As of September 10, 2008, total ETG
(exchange traded gold) assets held by the New York Stock Exchange (NYSE) and the
London Stock Exchange (LSE) were down 8% since August 1, 2008. During the same time
period, gold prices dropped by 15%.
Gold ETF Holdings (NYSE & LSE)

30.00

25.00

20.00
(mm ounces)

15.00

10.00

5.00

-
02-Jan-06 04-Sep-06 07-May-07 07-Jan-08 08-Sep-08
Source: ET G

We believe the recent drop in investment demand is temporary, and expect demand to
i
ncr
easea sg oldcontinuest oholdi t
sstatusasa‘capit
alpr es
ervat
iona sset’
.

In summary, we continue to be bullish on gold prices based on a weakening U.S dollar, high
oil prices and strong investment demand. The average consensus forecasts for gold prices are
US$915/oz in 2008, and US$910/oz in 2009. We have maintained our long-term gold price
assumption at US$600/oz.

Financials Operations: At the end Q3 2008 (ended March 30, 2008), the company had cash and
working capital of $1.11 million and -$8.24 million, respectively. The negative working
capital was largely due to a $9 million debenture payable, which was issued by the company
on June 15, 2007, to Wira Mas Unit Trust as partial consideration for the acquisition of the
Selinsing Gold property. The amount was repaid by the due date prior to June 30, 2008.

During the 9-month period ended March 2008, the company had a burn rate (including
exploration expenses) of $0.37 million per mont h.Thef ol
lowi
ngt
abl
eshowst
hec
ompany ’
s
cash position and liquidity ratios at the end of Q3-2008.

(C $) 2008 (9 mo)
Cash & Cash Equivalents 1,107,842
Working Capital (8,235,802)
Current Ratio 0.14
LT Debts/ Assets -
Burn Rate/Month (incl exploration costs) (371,239)
Cash from financing activities (47,228)
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 16

Completed $38.1 million financing - In July 2008, the company completed a private
placement and a credit facility agreement to raise $38.1 million. The company issued 70.12
million units (each units consists of one common share and one warrant - $0.50 per share for
a 3 year period) at a unit price of $0.40 to raise $28.05 million, and entered into a convertible
credit facility for up to $10 million (maturing in July 2011) with interest of 3% (payable in
the first year in cash/shares, and thereafter in cash). The credit facility is convertible into
units at a unit price of $0.40 (each unit will comprise a share and a half warrant).

We believe it is highly encouraging that the company was able to raise such a large amount
especially during current market conditions when most junior mining companies are having
tr
oubl er aisingc a pi
tal.Webe lievei ti ndicate
sinve s
tors’c onf i
de nceonne art ermg old
producers.

Monument is now fully funded to move the Selinsing Gold Mine Project forward to the
construction stage and anticipates gold production in the first half of 2009. The funds will be
used be used for working capital, to construct a 1,200 tpd CIL treatment plant with a gold
production capacity of up to 40,000 ounces per year, commence development of the open cut
gold project, acquire three reverse circulation/diamond drill rigs in order to continue, and
expandi tse xplorationpr og r
a m onMonume nt’sBuffalo Reef property.

Stock Options and Warrants: We estimate the company currently has 22.43 million stock
options outstanding with a weighted average exercise price of $0.42 and maturity dates
between February 2012 and August 2013. The company also has 101.29 million warrants
outstanding with a weighted average exercise price of $0.53, and maturity periods between
Ma rch2009a ndJ uly2011.Al loutstandingopt ionsa ndwa rrantsar
ec urrently‘out -of-the-
mone y’
.

Conclusion: We estimate the company currently has about $15 million in working capital,
and $10 million in lines of credit (no amount has been withdrawn from the line of credit yet).
Based on our discussion with management, the company has a budget of about $14.5 million
in capital expenditures to the end of 2008 ($13 million for Selinsing and $1.5 million for
Buffalo Reef). We believe the company is in an excellent cash position to fund its Selinsing
project to production.

Commences In August 2008, Monument announced that it has issued a writ in the High Court of British
Action for Col umbiaa gai
ns tSi m Tz e ChuiAKA J yn Tz e Ba ke re te l.( “the Defe
ndants”)f or
Injunction and defamation. The defendants sent letters to a variety of parties, including Monument, the
Damages TSX Venture Exchange, the London AIM Exchange and others, alleging that Monument did
not own the Selinsing property. Monument is seeking an injunction and damages against the
Defendants.

Monument has confirmed ownership of the Selinsing property and claims that there is no
subs t
ancet ot heDe f
enda nts’c lai
ms .Neither the TSX Venture Exchange nor the London
AIM Exchange has taken the matter further. At this time, we do not have sufficient
information to comment on this matter.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 17

Valuation Our discounted cash flow (DCF) valuation model gave a fair value of $0.46 per share on the
company. All our assumptions and inputs are presented in the following table. We have
valued the company based on known resource estimates for the Selinsing and the Damar
Buffalo Reef properties. For conservatism, we have discounted inferred and historic
resources by 50%.
DCF Valuation Summary

Resource (in tonnes) 11,01 9,980

W t. average Grade (gpt) Selinsing: 1.32; Damar: 2.30
Contained Metal (in troy oz) 501,953
Recovery (CIL) 90.0%

Production Commencement Q2 2009

Mine Life (in years) 10
Go ld Price (in US$/oz) U S$600/oz

Average O perating Co sts $325/oz

PV of Capital Costs $15,928,857

Discount Rate 12.5%

Net Present Value $57,222,214
W orking Capital 15,030,494

Debt -
Net Value $72,252,708
No . of shares (diluted) 155,640,025
Va lue per share $0.46

Our valuation is highly sensitive to our long-term gold price and discount rate assumptions.
The table below shows a sensitivity analysis.
Sensitivity
Gold Price (in US$ /oz) $400 $500 $600 $70 0 $800 $900 $1,000
Discount Rate
8.00% $0.31 $0 .44 $0.56 $0.6 8 $0.81 $0.93 $1.06
10.00% $0.29 $0 .40 $0.51 $0.6 3 $0.74 $0.85 $0.96
12.5% $0.27 $0 .37 $0.46 $0.5 6 $0.66 $0.76 $0.85
15.00% $0.25 $0 .34 $0.42 $0.5 1 $0.59 $0.68 $0.76
Our real options valuation model gave a fair value of $0.44 per share. A summary of our
valuation model is shown below.

2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 18

Real Options Valuation

Resources Grade Contained Metal Gold Price Value (C$)
(in tonnes) (g/t) (in troy oz) (US$/oz)
Selinsing 9,977,500 1.32 425,000 $600 263,925,000
Damar Buffalo Reef 1,042,480 2.30 76,953 $600 31,858,741

Operating Costs ($/oz) $325/oz Total Value (C$) $295,7 83,741

Recovery (CIL) 90.0% Operating Costs (C$) $146,2 84,350
C$/US$ 1.15 Net Value (C$) $149,4 99,391

Inputs relating to the underlying asset

Estd. Mineral Resources (in tonnes) 9,9 77,500
Estd.Value of Minerals if extracted today $141,251,839
Annualized Standard Deviation of Mineral prices 19%
Present Value of Capital Investment $15,928,857
Estd. Mine Life (years) 10
Riskfree Rate 3.47%
Output
Stock Price $141,251,839 T.Bond rate 3.47%
Strike Price $15,928,857 Variance 0.04
Expiration (in years) 10 Annualized div yield 7.86%

Value of Option $53,110,630

d1 = 3.209 Working Capital 15,030,494
N(d1) = 0.999 LT Debt -
d2 = 2.610 No of outstanding shares (diluted) 155,640,025
N(d2) = 0.995 Value per share $0.44

Conclusions & We believe the company has significant exploration upside along the continuous epithermal
Rating trend that encompasses Selinsing and Buffalo Reef. Therefore, we believe our valuation is
conservative as our valuation models are based on only half of the known inferred and
historic resource estimates.

Based on ourval uati

on mode l
sand r evi
ew oft hec ompany’ spr oje
cts,wei niti
ate
coverage of Monument Mining with a BUY rating and fair value estimate of $0.50 per
share.

Risks The following risks, though not exhaustive, will cause our estimates to differ from actual
results:


Success of the company strongly depends on adding to their resource. Monument has
commenced drilling, and hopes to define a further resource on the property for mining.

Selinsing is proceeding in absence of a feasibility study.

The company has yet to achieve commercial production

The success of further development, exploration, and expansion is a significant factor in
Monume nt’ ss
uccess.

Like other junior exploration companies, the value of the company depends heavily on
gold prices.

Wer
atet
hec
ompany’
sshar
esaRI
SKof5(
Highl
ySpe
cul
ati
ve)
.
2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Monument Mining Ltd. (TSXV: MMY) –Initiating Coverage Page 19

Fundamental Research Corp. Equity Rating Scale:

Buy –Annual expected rate of return exceeds 12% or the expected return is commensurate with risk
Hold –Annual expected rate of return is between 5% and 12%
Sell –Annual expected rate of return is below 5% or the expected return is not commensurate with risk
Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events.

Fundamental Research Corp. Risk Rating Scale:

1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry.
The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is
conservative with little or no debt.

2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive
to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash
flows( tho
ug hc urrentfreecas
hf lowma ybene gat
iv eduet oc api
talinvestme nt
).Thec ompa ny’sc apita lstr
uctureiscons er
va ti
v ewi thl itt
let omo de stuseo fde bt.

3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive
to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and
coverage ratios are sufficient.

4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a
turnaround situation. These companies should be considered speculative.

5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products.
Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues, and may rely on external funding.
These stocks are considered highly speculative.

Disclaimers and Disclosure

The opinions expressed in this report are the true opinionso fthea na lystabo utthi
sc ompa nyandi ndustry.Any“ forwa r
dl o okings tateme nts”a reo urbe stestima tesand
opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness.
The rei snog uaranteet hato urf orecastswi llma teri
alize.Ac tua lresult
swi lllikel
yv ar
y.Thea nalystandFunda me ntalRe s ear
chCo rp.“ FRC”do e sno to wna nys hares
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company. Fees of less than $30,000 have been paid by MMY to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes
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2008 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT